Study: 10% growth in crypto market cap reduces value of African firms by 0.76%

04/02 10:45

According to the findings of a study undertaken by Mina Sami and Wael Abdallah, each time the cryptocurrency market cap grows by 10%, there is a corresponding 0.76% drop in the market value of African micro-entities. The study findings also suggested that firms in less competitive sectors are “more likely to get hurt by the cryptocurrency market’s expansion.” For instance, the two authors conclude in their report that the cryptocurrency market has “a considerable effect on Africa’s energy, financial, industrial, and consumer services sectors.” In contrast, the real estate and the information technology sectors are less affected by the growth of the crypto market, the authors said. Meanwhile, the authors claimed that their study has highlighted the importance of having “internal strategies and firm experience.” These attributes are vital for African firms that must now compete with cryptocurrencies. Although the authors — who are also assistant professors at AUC — have acknowledged the steps taken by countries to counter the growth of the cryptocurrency market, they argue, however, that such steps have in fact “failed to protect their domestic firms.” According to the authors, this failure calls for interventions by governments that “improve the financial market’s competitiveness in Africa.”
bullishbullishbullish2bearishbearishbearish看跌按讚分享
免責聲明以上內容不代表 HTX 的任何立場HTX 不為任何交易提供相關決策建議

相關文章

  • Image

    No Bitcoin Buy This Monday: Strategy Opts For Bonds Instead

  • Image

    New York Lawsuit Takes Aim At 3.79 Million Dormant Bitcoin

  • Image

    VItalik Buterin Defends Long-Term Vision Amid Token Price Concerns

全部評論0最新熱門

avatar
最新熱門

相關文章

  • Image

    No Bitcoin Buy This Monday: Strategy Opts For Bonds Instead

  • Image

    New York Lawsuit Takes Aim At 3.79 Million Dormant Bitcoin

  • Image

    VItalik Buterin Defends Long-Term Vision Amid Token Price Concerns